Data Flow and Service Trade Exports:Theoretical and Empirical Analysis Based on Data Factors
The free flow of data has an important impact on the release of the value of data factors,the benefits of the development of the digital economy and service trade exports.In this paper,data as input factors are added to the production function,we firstly build a model with data flow restrictiveness index to measure the degree of free flow of data.Theo-retical derivations find that the free flow of data promotes service trade exports through three channels:enhancing productivity,reducing compliance costs,and decreasing search costs.Secondly,by calculating the Data Flow Restrictiveness Index(DFRI)of 21 service industries in 39 countries from 2000 to 2014 as a variable affecting service trade exports,the results show that data flow restrictions have a significant negative effect on service trade exports,in other words,the free flow of data will promote service trade exports.Mecha-nism tests show that enhancing productivity,reducing compliance costs,and decreasing search costs are three important channels through which the free flow of data promotes ser-vices trade exports.Further analysis show that the free flow of data have various heterogene-ous effects on service trade exports by means of different countries'data regulation systems,development stages and types of services.
Data FactorsFree Flow of DataData Flow Restrictiveness IndexService Trade Exports